UBS Reiterates Buy Rating on On Holding AG (ONON), Highlights Strong Growth Potential

UBS analyst Jay Sole reiterated a Buy rating and $85.00 price target on On Holding AG (NYSE: ONON).

The analyst commented, "We think On's continued focus on innovation, performance, athletes, sports, direct-to-consumer selling, and maintaining a premium, full-price brand image will drive industry-leading sales and earnings growth. We forecast On delivering 20%, 24%, and 20% 5-yr. sales, adjusted EBITDA, EPS CAGRs, respectively, and expect strong growth to continue from there. This type of growth would make On one of the world's fastest-growing athletic wear brands. We also think it will positively surprise the market, and this is why we expect the stock's P/E ratio to rise. The market sees On as mainly a running shoe brand and doesn’t fully appreciate the brand's potential to address a much larger market, in our view. Our meeting with management at the ICR conference on January 12th reinforced our conviction in our Buy thesis."

For an analyst ratings summary and ratings history on On Holding AG click here. For more ratings news on On Holding AG click here.

Shares of On Holding AG closed at $48.91 yesterday.

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